Published: Tuesday, May 04, 2010
Bylined to: Roy S. Carson

Russian businessman Andre Agapov dismisses Rusoro investment speculation

VHeadline editor & publisher Roy S. Carson reports: In an exclusive interview with VHeadline, Tuesday, Russian businessman Andre Agapov dismissed local newspaper reports yesterday (May 3) that Vancouver-based Rusoro Mining Ltd., had put the brakes on US$25 million investment plans for 2010 and explained all that's happened is that the plans have been re-scheduled for the second half of this year in view of gold export licenses expected to be issued before the end of June.

Those Venezuelan government licenses will allow 60% of the company's gold production to be sold directly to the Central Bank of Venezuela (BCV) -- under the controlled foreign exchange rate scheduled at Bs.F 4.30 to the US$ -- releasing 30% for international sale at spot market prices in unrestricted dollars and 10% to domestic (Venezuelan) buyers at spot with an 11% discount.

Agapov says there has been a maelstorm of speculation following misplaced speculation in a story originally published in the Caracas newspaper El Mundo.

• The speculation also comes on the heels of last week's news that George Salamis is resigning the presidency of Vancouver Rusoro effective May 31.

There's also a build-up of speculation in gold markets about the ultimate demise of Toronto-based Crystallex International and Spokane (Washington-USA)-based Gold Reserve at the Las Cristinas and Las Brisas del Cuyuni goldfields respectively. Agapov says there's been no contact with either of the two companies: "we're mining and minding our own business," he told VHeadline in London-England ... where he flew in this morning ahead of meetings with investors who had become alarmed by yesterday headlines.

"The reality is that we have had to re-schedule our investment plans because of a number of delays including the building of a massive ramp at our major underground mine. As I said. we have continued mining and are also minding our own business getting on with the job in hand in anticipation of the export license at the end of June."

Otherwise Agapov describes his company's situation in Venezuela as "hunky dory" and proceeding without major problems. He welcomes the fact that Jose Khan has returned to head both the Basic Industries & Mining (Mibam) Ministry and the Venezuelan Guayana Corporation (CVG).

"Minister Khan is a good friend of my father (Vladimir Agapov) and they are already working on some other projects including the new Ceramics City and production of China Clay from our mine in Bolivar State. Things take a little longer in Venezuela but we are used to that! Our relationship with the government and with Minister Khan especially can not be any better!"

Roy S. Carson
editor@vheadline.com